The United States significantly increases tariffs on Chinese products! Will sea freight be affected again?
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According to CCTV News, according to a statement issued by the Office of the United States Trade Representative, on September 13, local time, the Biden administration stated that the United States has finally decided to increase tariffs on certain products made in China.
The Office of the U.S. Trade Representative said that starting from September 27, the tariff rate for electric vehicles made in China will be increased to 100%, and the tariff rate for solar cells will be increased to 50%. Electric vehicle batteries, critical minerals, steel, aluminum, masks Tariffs on goods and quayside container cranes will be raised to 25%, while tariff increases on other products including semiconductor chips will also take effect over the next two years.
In addition, according to foreign media reports, U.S. presidential candidate Trump proposed to impose a 20% tariff on all imported goods and impose additional tariffs of up to 60% to 100% on Chinese goods. That could trigger a new surge in freight rates for transpacific trade shipping.
Sea freight intelligence platform Xeneta said the last time Trump was president, when tariffs were first imposed on Chinese goods in 2018, trans-Pacific sea freight rates rose by more than 70%.
According to Xeneta data, the average spot freight rate for a 40-foot container from China to the U.S. West Coast rose from ,503 to ,604 from January 1, 2018, to November 1, 2018.
Peter Sand, chief analyst at Xeneta, said: "When the container shipping market rises, these costs are passed down the supply chain and ultimately paid by the end consumer." The Red Sea crisis is a testament to the impact of supply chain disruptions on commodity costs.
Since the Houthi attack, spot freight rates from the Far East to the U.S. East Coast have increased by 303% between December 1, 2023, and July 1, 2024. During the same period, freight rates from the Far East to the US West Coast increased by 389%.
Peter Sand noted: “The way shippers respond to supply chain threats is to import more cargo as quickly as possible. In the wake of the Red Sea crisis, early imports have driven up freight rates significantly, and we will see shippers adopt similar measures before any new tariffs take effect. way. Both shipping companies and forwarders hate uncertainty because it reduces their ability to manage supply chain risks.
That’s why those in the maritime industry support global trade and don’t want to see tariffs or other barriers. "
Ministry of Commerce spokesperson He Yongqian said that we have noticed the relevant announcement. China has made serious representations to the United States on many occasions regarding the Section 301 tariffs. The WTO has long ruled that the Section 301 tariffs violate WTO rules. The United States is wrong to increase tariffs on China. Add error.
Previously, the Office of the U.S. Trade Representative solicited public comments on the results of the tariff review. Most of the opinions were against imposing additional tariffs or applying to expand the scope of tariff exemptions, which shows that the U.S. Section 301 tariffs on China are unpopular.
We urge the US to correct its wrong practices, actively respond to calls from all walks of life, and immediately cancel all additional tariffs on China.
